Ashley Nickle

Amazon, supermarkets compete for online grocery dollars

Amazon already dominates in the space, accounting for 30% of online grocery sales, according to a Brick Meets Click survey of nearly 5,000 people. Services like Prime Pantry, Prime Now, Amazon Fresh and Subscribe & Save helped the company build that lead even before its acquisition of organics-focused retailer Whole Foods Market.

However, supermarkets overall also account for 30% of online grocery sales, and the average order is $116 compared to $45 for Amazon. Supermarkets also outperform Amazon in purchase frequency.

“To grow grocery market share, Amazon needs to strengthen its physical presence and persuade consumers to buy highly perishable products from it,” Brick Meets Click partner David Bishop said in a news release. “Whole Foods’ connection to Prime Now and exclusive Prime membership benefits will help to varying degrees, but more moves are clearly needed.”

Meanwhile, supermarkets will look to make the most of their current advantages — physical locations, more frequent purchases and larger basket sizes — and aim to make online grocery even easier, per the release.